Concept of Management By Objective (MBO)
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This document discusses Management By Objectives (MBO), an approach developed by Peter Drucker. MBO involves managers and subordinates jointly defining common goals and areas of responsibility. They use agreed upon measures to guide operations and performance assessments. The MBO process includes goal setting, implementation of plans, and review/appraisal. Benefits include a results-oriented philosophy and improved planning/morale. Challenges are that MBO can be time-consuming and create organizational problems if not implemented properly with support, training, commitment and realistic goals. Examples of companies using MBO include Xerox, HP, and DuPont.
Concept of Management By Objective (MBO)
- 1. Management By Objectives Management By Results Presentation by Neeraj Pant Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity. George S. Patton
- 2. Most of us what we call management consists of making it difficult for people to get their work. Peter Drucker
- 3. Concept of MBO • Developed by Peter Drucker • Most widely accepted Philosophy of Management • Democratic style of Management • Better than Classical Theory of Management By Control. (MBC)
- 4. Concept of MBO • Superiors and Sub-ordinates managers jointly define common goals • Together decide about their areas of responsibility and expected results. • They use these measures as guides for operating the unit and assessing the contribution of each of its member.
- 5. Steps in MBO Process Goal Setting Manager- Subordinate Involvement Match Goals and Resources Implementation of Plan Review and Appraisal of Performance
- 7. Advantages of MBO • Develops result-oriented Philosophy • Raises Employee’s morale • Acts as a motivational Source • Facilitates Effective Planning • Improves the Quality of Management
- 8. Limitations of MBO • Time Consuming • Reward Punishment Approach • Creates Organizational Problems • Develops Conflicting Objectives • New opportunities might lose.
- 9. How to make MBO effective
- 10. How to make MBO effective • Support from all • Acceptance of MBO by managers and subordinates • Training for managers • Organizational Commitments • Allocation of adequate time and resources • Proper communication channel • Realistic Goals
- 11. MBO in Corporate • Xerox • Hewlett Packard (HP) • DuPont • GL India • Intel
- 12. Any Question? You are free to ask.
- 13. For more information, please go to: http://kalyan-city. blogspot.com/2010/06/management-by-objectives- mbo-peter.html http://www.brainyquote.com/quotes/authors/p/p eter_drucker.html
- 14. Thank You What is not measured cannot be managed.